KVH Industries Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 2 narrowed. The quarter’s numbers.

Key takeaways

Revenue grew 35% year over year: Revenue was $38.4 million, up 35% from the third quarter of 2025 and 14% from the second quarter of 2026. Growth came from recurring service revenue and LEO terminal sales. Source
LEO reached 58% of service revenue: LEO share of service revenue was 58%, up from 51% in the prior quarter and 39% a year earlier. Management cited LEO growth and continued customer migration from VSAT. Source
Net loss narrowed to $0.6 million: Net loss was $0.6 million, or $0.03 per share, against $6.9 million, or $0.36 per share, a year earlier. Both periods include inventory write-downs. Source
Adjusted EBITDA rose to $3.9 million: Non-GAAP adjusted EBITDA was $3.9 million, against $3.0 million in the prior quarter and $1.4 million a year earlier. Management attributed the increase to service gross profit growth. Source
Service gross margin fell to 34%: Service gross margin, which includes airtime depreciation, was 34%, down from 36% in the prior quarter and flat with the third quarter of 2025. Source
Cash was $50.7 million, no debt: Cash and cash equivalents were $50.7 million at September 30, 2026, with no debt outstanding. Source
CommBox Edge Pro gained security tools: In September, KVH expanded its CommBox Edge Pro offering with enhanced cybersecurity and IT tools, alongside the start of managed IT subscriptions. Source

“Our third quarter results reflect the steady growth of our recurring service business,”
Brent C. Bruun, KVH’s Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	Full-year 2026	$137-143 million	Narrowed from $130-145 million
Non-GAAP adjusted EBITDA Source	Full-year 2026	$13-15 million	Narrowed from $11-16 million

What changed from last quarter

Guidance raised: Full-year 2026 guidance narrowed. The low end of both the revenue and adjusted EBITDA ranges was raised, and the high ends were lowered. Source
New: Managed IT service subscriptions began in the third quarter, a service not reported in the prior quarter's release. Source
New: Link Live crew content service launched in September, adding live TV streaming to the crew content offering. Source
Ended: The $15 million share repurchase program was completed. The company does not currently have a repurchase authorization in place. Source

Quarter results and service growth

Revenue grew 35% year over year: Revenue was $38.4 million, up 35% from the third quarter of 2025 and 14% from the second quarter of 2026. Growth came from recurring service revenue and LEO terminal sales. Source
Service revenue and gross profit rose: Service revenue was $33.0 million, up 30% year over year. Service gross profit was $11.1 million, up 28% year over year and 5% from the prior quarter. Source
LEO reached 58% of service revenue: LEO share of service revenue was 58%, up from 51% in the prior quarter and 39% a year earlier. Management cited LEO growth and continued customer migration from VSAT. Source
VSAT decline partly offset service growth: Management said service revenue growth was driven by LEO subscriber growth, partly offset by lower VSAT service revenue. The release gives no VSAT revenue figure. Source
Nine-month net income of $0.15 million: Nine-month net income was $0.15 million, against a net loss of $7.7 million a year earlier. Nine-month net sales were $104.5 million, up from $80.5 million. Source

Profitability and net loss

Net loss narrowed to $0.6 million: Net loss was $0.6 million, or $0.03 per share, against $6.9 million, or $0.36 per share, a year earlier. Both periods include inventory write-downs. Source
Adjusted EBITDA rose to $3.9 million: Non-GAAP adjusted EBITDA was $3.9 million, against $3.0 million in the prior quarter and $1.4 million a year earlier. Management attributed the increase to service gross profit growth. Source
Operating loss narrowed to $1.2 million: Loss from operations was $1.2 million, against $7.6 million in the third quarter of 2025. Nine-month operating loss was $1.4 million, against $10.2 million. Source

“Customers are choosing KVH as they move to LEO, and they increasingly rely on us for more than connectivity, from managed IT and cybersecurity to live crew content.”
Brent C. Bruun, KVH’s Chief Executive Officer

Costs, margins and product sales

Service gross margin fell to 34%: Service gross margin, which includes airtime depreciation, was 34%, down from 36% in the prior quarter and flat with the third quarter of 2025. Source
Cost of service sales rose: Costs of service sales were $21.8 million, up from $16.7 million a year earlier, against service revenue of $33.0 million. Source
Research and development spending declined: Research and development expense was $0.7 million, down from $1.0 million a year earlier. Sales, marketing and support was $5.0 million, against $4.9 million. Source
Product sales rose to $5.5 million: Product sales were $5.5 million, against $3.1 million in the third quarter of 2025. The prior release reported $4.0 million for the second quarter of 2026. Source
Cost of product sales fell: Costs of product sales were $8.1 million, down from $9.8 million a year earlier, against product sales of $5.5 million in the quarter. Source

Cash and balance sheet

Cash was $50.7 million, no debt: Cash and cash equivalents were $50.7 million at September 30, 2026, with no debt outstanding. Source
Cash declined from June and December: Cash was $57.7 million at June 30, 2026 and $69.9 million at December 31, 2025.
Receivables rose from December: Accounts receivable, net, was $29.6 million at September 30, 2026, up from $25.0 million at December 31, 2025. Source
Inventories fell from December: Inventories, net, were $8.9 million, down from $14.9 million at December 31, 2025. Prepaid expenses and other current assets rose to $20.5 million from $8.0 million. Source

“That broader role matters even more as LEO pricing evolves, and we remain focused on growing recurring service revenue and converting it into cash flow.”
Brent C. Bruun, KVH’s Chief Executive Officer

Strategy and new offerings

Capital allocation priorities stated: Management listed priorities as growing the LEO customer base, expanding managed IT, content and value-added services, and selective tuck-in acquisitions that add recurring revenue. Source
CommBox Edge Pro gained security tools: In September, KVH expanded its CommBox Edge Pro offering with enhanced cybersecurity and IT tools, alongside the start of managed IT subscriptions. Source
Link Live added live TV: Link Live launched in September, adding live TV streaming to the crew content offering. Source

Below-the-line items and share count

Interest income declined: Interest income was $0.5 million, down from $0.7 million a year earlier. Nine-month interest income was $1.6 million, against $1.8 million. Source
Income tax moved to a benefit: Income tax was a benefit of $11 thousand, against an expense of $16 thousand a year earlier. Nine-month tax expense was $317 thousand, up from $146 thousand. Source
Basic share count declined: Basic weighted average shares were 18.3 million in the quarter, down from 19.4 million a year earlier. Source

Coming up, as management said on 5 November 2026

Starlink plan prices rise December 1: KVH plans to raise Starlink plan prices from December 1, 2026. Management expects higher service revenue and lower service gross margin, with no material change in service gross profit. Source

Figures management reported

Figure	Reported
Capital expenditures Source	$1.5 million in 3Q26; $1.2 million in 2Q26; $1.5 million in 3Q25

Risks management discussed

Operational: Non-cash inventory write-downs of $2.3 million in the third quarter of 2026 and $5.5 million in the third quarter of 2025 were included in results for both periods. Source
External: Starlink announced price increases for all of its reseller and maritime customers, and management said LEO pricing is evolving. Source

Earlier plans management reported on

Met: The $15 million repurchase program was completed in the third quarter, with about 1.2 million shares bought for $10.7 million. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

KVH Industries Reports Third Quarter 2026 Results

Total Revenue Up 35% Year Over Year

Service Revenue Up 30% and Service Gross Profit Up 28% Year Over Year

Narrows 2026 Outlook and Raises Low End

BRISTOL, RI, November 5, 2026 - KVH Industries, Inc. (Nasdaq: KVHI) today reported financial results for the third quarter ended September 30, 2026. The company will hold a conference call to discuss these results at 9:00 a.m. ET today, which can be accessed at ir.kvh.com.

3Q Financial Highlights

Total revenue of $38.4 million, up 35% from the third quarter of 2025 and up 14% from the previous quarter, with growth in both recurring service revenue and LEO terminal sales.
Service revenue of $33.0 million, up 30% from the third quarter of 2025 and up 11% from the previous quarter, driven by LEO subscriber growth and partly offset by lower VSAT service revenue.
Service gross profit of $11.1 million, up 28% from the third quarter of 2025 and up 5% from the previous quarter.
LEO represented 58% of service revenue, up from 51% in the previous quarter and 39% in the third quarter of 2025, reflecting both LEO growth and continued customer migration from VSAT.
Service gross margin of 34%, compared with 36% in the previous quarter and 34% in the third quarter of 2025.
Net loss of $0.6 million, or $0.03 per share, compared with a net loss of $6.9 million, or $0.36 per share, in the third quarter of 2025. Results in both periods include non-cash inventory write-downs of $2.3 million in the third quarter of 2026 and $5.5 million in the third quarter of 2025.
Non-GAAP adjusted EBITDA of $3.9 million, compared with $3.0 million in the previous quarter and $1.4 million in the third quarter of 2025, driven by growth in service gross profit.
Cash and cash equivalents of $50.7 million and no debt. KVH repurchased $10.7 million of shares during the third quarter.

“Our third quarter results reflect the steady growth of our recurring service business,” said Brent C. Bruun, KVH’s Chief Executive Officer. “Customers are choosing KVH as they move to LEO, and they increasingly rely on us for more than connectivity, from managed IT and cybersecurity to live crew content. That broader role matters even more as LEO pricing evolves, and we remain focused on growing recurring service revenue and converting it into cash flow.”

Business and Operational Updates

LEO pricing. Starlink has announced price increases for all of its resellers and maritime customers. As a result, KVH expects to raise the prices it charges customers for Starlink plans effective December 1, 2026; KVH expects this will increase service revenue and reduce service gross margin, but does not expect a material change in service gross profit.
Managed services. Customers began subscribing to KVH’s managed IT service in the third quarter, and in September KVH expanded its CommBox Edge Pro offering with enhanced cybersecurity and IT tools.
Crew content. Launched Link Live in September to add live TV streaming to KVH’s crew content offering.

Third Quarter Financial Summary

(in millions, except per share data)

	3Q26	2Q26	QoQ change	3Q25	YoY change
Revenue	$38.4	$33.7	14%	$28.5	35%
Service revenue	$33.0	$29.7	11%	$25.4	30%
Service gross margin	34%	36%	(199)bps	34%	(49)bps
Net (loss) income	$(0.6)	$0.2		$(6.9)
Net (loss) income per share	$(0.03)	$0.01		$(0.36)
Non-GAAP adjusted EBITDA	$3.9	$3.0	30%	$1.4	188%
Capital expenditures	$1.5	$1.2	26%	$1.5	1%

Outlook

KVH is narrowing its full-year 2026 outlook, including raising the low end of its original range.

Full-year 2026

	Current outlook	Prior outlook
Revenue	$137-143 million	$130-145 million
Non-GAAP adjusted EBITDA	$13-15 million	$11-16 million

The narrowed outlook reflects continued top-line momentum, including a modest benefit from Starlink repricing in December, and disciplined cost management driving operating leverage.

KVH has not provided a full reconciliation of forward-looking adjusted EBITDA to net income because it cannot predict, without unreasonable efforts, the amount of certain items excluded from adjusted EBITDA. These include income tax expense, foreign exchange transaction gains and losses, gains or losses on the sale of fixed assets, employee termination and other variable costs, transaction-related and other variable legal and advisory fees, losses on unfavorable purchase commitments, inventory write-downs and impairment charges. These items could be significant to net income.

Capital Allocation

KVH ended the quarter with $50.7 million of cash and cash equivalents and no debt.

KVH’s capital allocation priorities are growing its base of LEO customers, expanding the managed IT, content and other value added services that keep those customers with KVH, and pursuing selective tuck-in acquisitions that add recurring revenue.

During the third quarter, KVH repurchased approximately 1.2 million shares for $10.7 million, completing its $15 million repurchase program. KVH does not currently have a repurchase authorization in place. The Board continuously evaluates the best use of cash in the context of the company’s overall capital allocation framework.

Key Metrics

Service revenue includes airtime, content and value-added services revenue, including managed IT services.
LEO share of service revenue is LEO airtime revenue as a percentage of total service revenue.
Service gross margin is service gross profit, including airtime depreciation, as a percentage of service revenue.
Non-GAAP adjusted EBITDA is defined under Non-GAAP Financial Measures below and is reconciled to GAAP net (loss) income in the tables accompanying this release.

Conference Call Details

KVH Industries will host a conference call today at 9:00 a.m. ET through the company’s website. The conference call can be accessed at ir.kvh.com and listeners are welcome to submit questions pertaining to the earnings release and conference call to ir@kvh.com. The audio archive will be available on the company website within three hours of the completion of the call.

Non-GAAP Financial Measures

This release provides non-GAAP financial information as a supplement to our condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles (“GAAP”). Management uses these non-GAAP financial measures internally in analyzing financial results to assess operational performance. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The non-GAAP financial measures used in this press release adjust for specified items that can be highly variable or difficult to predict. Management generally uses these non-GAAP financial measures to facilitate financial and operational decision-making, including evaluation of our historical operating results and comparison to competitors’ operating results. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting our business.

Some limitations of non-GAAP adjusted EBITDA include the following: non-GAAP adjusted EBITDA represents net income (loss) before, as applicable, interest income, net, income tax expense (benefit), depreciation, amortization, stock-based compensation expense, goodwill impairment charges, long-lived assets impairment charges, charges for disposal of discontinued projects, loss on unfavorable future contracts, employee termination and other variable costs, executive separation costs, prior period tax settlements, transaction-related and other variable legal and advisory fees, certain inventory write-downs, excess purchase order obligations, gains on sales of real estate and other fixed assets, gains and losses on sale of subsidiaries, and foreign exchange transaction gains and losses.

Other companies, including companies in KVH’s industry, may calculate these non-GAAP financial measures differently or not at all, which will reduce their usefulness as a comparative measure.

Because non-GAAP financial measures exclude the effect of items that increase or decrease our reported results of operations, management strongly encourages investors to review our consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this release.

About KVH Industries, Inc.

KVH Industries, Inc. is a global leader in maritime and mobile connectivity delivered via the KVH ONE network. The company, founded in 1982, is based in Bristol, RI, with more than a dozen offices around the globe. KVH provides connectivity solutions for commercial maritime, leisure marine, military/government, and land mobile applications on vessels and vehicles, including the TracNet, TracPhone, and TracVision product lines, the KVH ONE OpenNet Program for non-KVH antennas, AgilePlans Connectivity as a Service (CaaS), and the KVH Link crew wellbeing content service.

Forward-Looking Statements

Forward-looking statements notice

This press release contains forward-looking statements, including statements about our projected financial results, demand for LEO-enabled connectivity, the anticipated repricing of our Starlink plans, our negotiations with Starlink regarding a new agreement for Starlink data, the expected reduction in our GEO bandwidth costs, anticipated cost savings, our investment plans and development goals, and the potential impact of our initiatives on revenue, competitive positioning, profitability and orders. Words such as “may,” “will,” “expects,” “plans,” “anticipates,” “believes,” “estimates” and similar terms identify forward-looking statements. Actual results could differ materially due to risks and uncertainties, including: increasing competition from lower-cost providers and LEO and other satellite systems, which is reducing demand for our geosynchronous satellite services; our dependence on reseller arrangements with a small number of airtime providers, particularly Starlink, and the risk that these providers change their terms, pricing or reseller networks, compete with us directly or stop supplying us; the risk that we will not reach a new agreement with Starlink on favorable terms, or at all; the risk that we will be unable to consume our prepaid Starlink Global Business data within the contract period, requiring us to expense the unused portion; increases in LEO airtime costs and minimum purchase obligations in excess of our needs; declining product sales and margins, and potential additional inventory write-downs; potential loss of recently acquired customer and vendor contracts and related impairment charges; risks related to our manufacturing wind-down, the relocation of our operations and our smaller workforce; customer demand, terminations and seasonality; cybersecurity breaches; our history of losses and fluctuating quarterly results; and economic, geopolitical, trade, tariff, currency and regulatory conditions. These and other factors are discussed in more detail in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 10, 2026, as updated by subsequently filed Quarterly Reports on Form 10-Q, available at ir.kvh.com. We undertake no obligation to update our forward-looking statements to reflect new information or developments.

KVH Industries, Inc., has used, registered, or applied to register its trademarks in the USA and other countries around the world, including but not limited to the following marks: KVH, KVH ONE, TracPhone, TracVision, AgilePlans, CommBox, and TracNet. Other trademarks are the property of their respective companies.

KVH INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts, unaudited)

	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Sales:
Service	$32,954	$25,388	$90,819	$70,079
Product	5,494	3,065	13,670	10,411
Net sales	38,448	28,453	104,489	80,490
Costs and expenses:
Costs of service sales	21,832	16,694	59,284	45,139
Costs of product sales	8,145	9,846	16,846	16,863
Research and development	713	969	2,244	3,072
Sales, marketing and support	5,019	4,884	15,325	14,854
General and administrative	3,982	3,691	12,227	10,806
Total costs and expenses	39,691	36,084	105,926	90,734
Loss from operations	(1,243)	(7,631)	(1,437)	(10,244)
Interest income	503	681	1,644	1,827
Interest expense	-	-	(6)	-
Other income, net	128	32	254	849
(Loss) income before income tax (benefit) expense	(612)	(6,918)	467	(7,568)
Income tax (benefit) expense	(11)	16	317	146
Net (loss) income	$(601)	$(6,934)	$150	$(7,714)
Net (loss) income per common share
Basic	$(0.03)	$(0.36)	$0.01	$(0.40)
Diluted	$(0.03)	$(0.36)	$0.01	$(0.40)
Weighted average number of common shares outstanding:
Basic	18,251	19,361	18,988	19,418
Diluted	18,251	19,361	19,168	19,418

KVH INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, unaudited)

	September 30, 2026	December 31, 2025
ASSETS
Cash and cash equivalents	$50,695	$69,910
Accounts receivable, net	29,586	25,049
Inventories, net	8,927	14,859
Prepaid expenses and other current assets	20,479	7,980
Total current assets	109,687	117,798
Property and equipment, net	20,315	22,032
Intangible assets, net	3,703	3,717
Goodwill	732	732
Right of use assets	4,212	4,382
Other non-current assets	2,418	2,237
Deferred income tax asset	560	602
Total assets	$141,627	$151,500
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$16,038	$14,968
Deferred revenue	1,528	1,155
Current operating lease liability	776	547
Total current liabilities	18,342	16,670
Long-term operating lease liability	3,798	3,841
Deferred income tax liability	5	5
Stockholders’ equity	119,482	130,984
Total liabilities and stockholders’ equity	$141,627	$151,500

KVH INDUSTRIES, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET (LOSS) INCOME TO NON-GAAP

EBITDA AND NON-GAAP ADJUSTED EBITDA

(in thousands, unaudited)

	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Net (loss) income - GAAP	$(601)	$(6,934)	$150	$(7,714)
Income tax (benefit) expense	(11)	16	317	146
Interest income, net	(503)	(681)	(1,650)	(1,827)
Depreciation and amortization	2,191	2,632	6,952	8,126
Non-GAAP EBITDA	1,076	(4,967)	5,769	(1,269)
Stock-based compensation expense	325	366	1,042	1,137
Disposal of a discontinued project	-	24	-	311
Loss on an unfavorable future contract	-	-	-	12
Employee termination and other variable costs	(5)	83	243	112
Transaction-related and other variable legal and advisory fees	164	25	240	91
Certain inventory write-downs	2,320	5,510	2,320	5,510
Loss (gain) on sale of fixed assets, including real estate	-	311	128	(1,019)
Foreign exchange transaction loss (gain)	40	9	(22)	141
Non-GAAP adjusted EBITDA	$3,920	$1,361	$9,720	$5,026

Contacts
KVH Industries, Inc. Anthony Pike 401-847-3327 IR@kvh.com · Longacre Square Partners KVH@longacresquare.com